Sales of both new and existing homes declined in April versus March, but the difference in y/y performance was notable as the steady declines in existing-home sales during 2023 and increases in new-home sales in early 2023 have largely ended.
Sales of both new and existing homes declined in April versus March, but the difference in y/y performance was notable as the steady declines in existing-home sales during 2023 and increases in new-home sales in early 2023 have largely ended.
In April, manufacturing output experienced a decline, while nominal retail and food service sales remained flat. There was a slight recovery in housing starts during the same period. Mortgage rates decreased for the second consecutive week, while consumer pricing was supported by shelter and gasoline costs. Producer-level pricing saw an increase in April, despite diesel prices falling for the fifth consecutive week. Truck spot rates eased as Roadcheck approached, and rail traffic remained robust except for coal shipments. A Canadian rail strike was postponed pending investigation, and Robert Primus was appointed as the STB chairman.
In March, economic indicators presented a mixed outlook. Wholesale sales dropped more sharply than inventories, possibly indicating oversupply or reduced demand. Both real exports and imports of goods declined, likely influenced by global trade dynamics and supply chain disruptions. New jobless benefits claims surged, reflecting ongoing labor market challenges. However, mortgage rates fell for the first time in six weeks, potentially boosting home buying. Diesel prices continued their decline, aiding transportation-dependent industries, while refrigerated truck spot rates surged due to increased demand for cold chain logistics. CDL hiring rebounded from a December lull. Despite challenges, total rail traffic increased year-on-year, suggesting resilience in transportation. These varied trends underscore the complexity of today's economic landscape.
In April, the US added 175,000 payroll jobs, indicating modest employment growth despite a slight uptick in the unemployment rate. The ISM's manufacturing index contracted, while mortgage rates continued to rise, posing challenges for homebuyers. Diesel prices fell slightly, providing relief for transportation industries. Trucking jobs remained stable, but for-hire carrier numbers declined. Truck spot rates showed mixed trends, and Teamsters Canada authorized a rail strike, potentially impacting regional logistics. These events depict a complex economic landscape with both positive and challenging aspects across sectors.
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